Oil prices stabilised on Wednesday following a sharp two-day rally driven by Donald Trump’s accelerated timeline for Russia to agree a truce in Ukraine.
The US president said he would implement secondary tariffs on countries buying oil from Russia after the 10-day deadline.
Brent Crude quickly rallied from around $68 a barrel to over $73, but has since settled back just above $72.
“Crude oil prices were firm in the early trading session on Wednesday after a two-day rally driven by escalating concerns over geopolitical tensions,” explained Frank Walbaum Market Analyst at Naga.
“The rally followed comments from US President Trump, who threatened to impose secondary sanctions on countries continuing to import Russian crude unless Moscow made progress on ending the war in Ukraine within 10 to 12 days. India’s indication that it may comply with U.S. measures raised the risk of a significant decline in Russian exports, potentially limiting global supply.”
Oil prices are trading largely in the middle of this year’s range, with prices capped by concerns about global growth and supported by ongoing geopolitical risks.